Justin Sun Rejects Huobi’s Insolvency Rumors, Says the Exchange Will ‘Thrive’
Tron’s founder Justin Sun urged people to ignore the rumors that the cryptocurrency exchange Huobi is coping with severe problems following the alleged detention of some of its executives.
The speculation seems to be a contributing factor why the company witnessed multi-million outflows over the weekend, whereas its total value locked (TVL) has dropped below $2.5 billion.
The Outcome of the Rumors
Several reports over the past few days hinted that the leading cryptocurrency exchange Huobi might be going through some liquidity issues while some of its personnel could have been arrested and questioned by law enforcement agents.
Chinese reporter Colin Wu posted on Twitter on August 5 that the Chinese police had detained and investigated “a large number of senior executives of offshore” crypto marketplaces for “allegedly providing fund payment and settlement services for gambling websites.”
Huobi faced a severe outflow of $64 million over the weekend, contributing to the overall decrease in total value locked (TVL) on the exchange. According to DefiLlama, this figure currently equals approximately $2.5 billion, a 20% drop compared to the $3.13 billion at the beginning of July.
Approximately a third of that stash is comprised of Bitcoin (BTC), whereas Tron’s native token (TRX) and Huobi Token (HT) are second and third with 26.5% and 20.3%, respectively.
It is worth mentioning that the speculation triggered severe volatility in the price of HT. It was charting ups and downs over the weekend before calming at its current level of around $2.66 (per CoinGecko’s data).
‘Ignore FUD’
Justin Sun – founder of Tron who also serves as a Global Advisor at Huobi – described the worrying situation surrounding the crypto exchange as “FUD.” He also envisioned that both entities are yet to flourish in the future.
Ignore FUD, keep building! #TRON and #Huobi will thrive through continuous development. Trust in our vision and community efforts for a stronger future. Perseverance guarantees success!
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 7, 2023
Many users on Twitter (now X) simply commented below his post with the number “4.” The latter has gained popularity from Binance’s CEO Changpeng Zhao, who uses the symbol on a regular basis to describe certain reports as false.
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